The judge says the FTC overstepped.
is a setback for workers as these agreements restrict their ability to take a similar job for better pay or other benefits.while the court considers the case. The judge found that the plaintiff, a Dallas tax services firm that sued the FTC, would more than likely prevail.
The commission overstepped because the FTC Act doesn't "expressly grant the authority to promulgate substantive rules regarding unfair methods of competition," the judge said.In April, the commission voted 3-2 to ban noncompete agreements, which prevent workers from taking positions with competitors for a period of time after they leave a job. The ban was set to take effect on Sept. 4.
The Chamber of Commerce, which joined the plaintiffs in this lawsuit along with the Business Roundtable and the Texas Association of Business, hadThe court is expected to issue is final decision by Aug. 30, after which the case will likely continue through the judicial system via appeals.Share on facebook Share on email
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